Tag Archives: Janet Yellen testimony

U.S. Unemployment Claims: Increase Expected

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Europe Shares Seen Lower Amid Russia Sanctions

European shares are on track for a lower open today as tensions in Ukraine are back into focus. The FTSE is called down 22 points at 6,762 while the German Dax is seen lower by 13 points at 9,846. The U.S. and the European Union announced a fresh round of sanctions against Russia yesterday following the annexation of Crimea back in April and ongoing tensions in the rest of Ukraine. Russian President Vladimir Putin is reported to have said that relations between the U.S. and Russia are in danger of reaching a dead end and could damage U.S. business interests in his country. On Wall Street yesterday, the Dow index posted its 15th record-high close of the year thanks to a rally in tech shares after Intel posted strong third-quarter guidance.

Economic data also helped to boost sentiment. The Federal Reserve’s Beige Book found the economy expanding at a modest to moderate pace with consumer spending up in all of the Fed’s districts. Another report had U.S. factory output increasing for a fifth month in June. U.S. Federal Reserve Chair Janet Yellen also concluded a second day of congressional testimony, where she faced a multitude of questions from lawmakers about legislation to make the Fed more accountable.

U.S. Unemployment Claims: Increase Expected

The last few months have seen moderately higher increases in non-farm payrolls. On the plus side, there’s been a marked increase in the monthly change, with the net gain running above the 200,000 mark for five straight months through June, the first run of 200,000 plus increases for five consecutive months in nearly 15 years.

Whether the latest run of strength is a genuine sign that the economy’s finally poised to create new jobs on a sustained basis or just another temporary bout of short-term noise that will again give way to the modest increases of recent history, remains to be seen. Watch for today’s weekly numbers on new filings for unemployment benefits. Last week’s report showed that claims fell to 304,000 for the week to July 5 - close to a seven year low. But the data was for the July 4 holiday week and so the latest numbers may be misleading. The consensus prediction is for a slight rise to 310,000. If the prediction holds, it will provide fresh support for thinking that modest improvement in the labour market is still in force.

U.S. Unemployment Claims today @ 12.30 GMT

Tech Stocks: Google Set To Be A Trillion Dollar Company

Google has the potential to hit a trillion-dollar market cap in the next 10 years, according to one technology investing leader who expects the search engine giant to join Facebook in gobbling up smaller companies and continuing to grow rapidly. The rise of the first trillion-dollar companies was one of a handful of big ideas entertained during a recent tech-focused panel where it was noted that companies that can make it easier to make videos will do well. Big things are also predicted for digital currencies, although not necessarily bitcoin, which is the most prominent name now but has faced price volatility, theft and scandal over the past year. Other providers will come along with at least half a dozen multi-billion dollar digital currency companies expected to emerge.

That sums up today’s highlights! Remember to keep in touch for all the latest tradable events of the day. Find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Dollar Holds Gains In Advance Of Yellen Testimony

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD Fed Chair Yellen Testifies @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Gains In Advance Of Yellen Testimony

The dollar remained higher against the yen following its biggest one-day advance in a week as Federal Reserve Chair Janet Yellen is due to testify before U.S. lawmakers. A gauge of the U.S. currency advanced surrounding bets that Yellen will provide additional clues as to when the central bank will raise interest rates for the first time since 2006. The yen was little changed as the Bank of Japan maintained record monetary stimulus.

Yellen is likely to emphasise the need to keep interest rates near zero for a considerable period even after a report this month showed unemployment fell to an almost six-year low. She may also say that while the jobless rate has fallen faster than the Fed expected, the presence of part-time and discouraged workers and long-term unemployed represents a reservoir of potential supply and accounts for wages not growing rapidly at all, which will probably justify the message that the Federal Reserve is in no rush to begin to raise interest rates. Regarding the inflation outlook, while unemployment fell to 6.1 percent last month and inflation has risen closer to the Fed’s 2 percent target, analysts believe there is still too much uncertainty for her to change the tone materially.

The dollar rose 0.1 percent to 101.59 yen at 1:52 p.m. after strengthening 0.2 percent yesterday, the most since July 3. The U.S. currency was unchanged at $1.3619 per euro. The yen traded at 138.37 per euro from 138.28 yesterday. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its major counterparts, climbed less than 0.1 percent to 1,007.13.

Gold Retains Sharp Losses Trading Close To 4-Week Low

Gold was trading near its lowest level in almost four weeks on Tuesday, as sharp overnight losses triggered by profit-taking and stronger global equities dented the metal’s safe-haven appeal. Spot gold was little changed at $1,306.75 an ounce after sliding more than 2 percent on Monday - its biggest daily drop since December. Gold touched a low of $1,302.90 in the previous session, its weakest since June 19. Gold had climbed to a near four-month high of $1,345 last week as financial troubles at Portugal’s top bank rekindled fears of another euro zone banking crisis, although those fears have now subsided. Investors will be monitoring Federal Reserve Chair Janet Yellen’s testimony in a U.S. Senate committee later today for signs of when the U.S. central bank would begin increasing interest rates. They will also be watching developments in the Middle East and Ukraine for any escalation in violence that would create fresh safe-haven demand for gold amid reports that Moscow is once more building up its troops on its joint Ukraine border.

European Shares Set For Pullback; Yellen In Focus

European shares are on track for a slightly lower open today, pulling back slightly from yesterday’s gains as investors remain cautious before earnings season and Federal Reserve Chair Janet Yellen’s testimony today. The FTSE is called down 5 points at 6,741 while the German Dax is seen lower by 8 points at 9,775. Stocks in Europe saw healthy gains in the previous session as earnings from U.S. bank Citigroup and merger activity surrounding pharma firm Shire sent bourses higher. However, investors look set to hold off before any more buying with a number of data due on Tuesday. June inflation data is out for the U.K., while Germany also receives its widely watched ZEW economic index. Central bank policy makers are also set for meetings today. In addition to Yellen’s two-day testimony, Bank of England Governor Mark Carney is due in front of U.K. lawmakers for a financial stability discussion. Both appearances will be an opportunity for investors to gauge the future direction of monetary policy in each country with both expected to start raising benchmark interest rates in the not-too-distant future. Elsewhere, U.K. Prime Minister David Cameron is expected to announce wide-ranging changes to the lineup of its decision-making body called the Cabinet. Foreign Secretary William Hague is currently the biggest name set to be given a new role in the reshuffle.

That sums up today’s highlights! It’s a busy day on the financial markets so remember to keep posted via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

ECB Interest Rates Too Low For Germany; Draghi Speaks

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: EUR ECB President Draghi Speaks @ 17.00 GMT

WHAT WE’RE WATCHING TODAY

ECB Interest Rates Too Low For Germany; Draghi Speaks

Bundesbank chief Jens Weidmann is reported to have said that the European Central Bank should tighten policy as soon as it can and that its interest rates are too low for Germany, as he referred to tensions in the united front the bank has presented since its major policy shift in June. Weidmann pointed out that many savers in Germany were unhappy with low interest rates but said these were aimed at supporting investment and consumption. The ECB cut interest rates to record lows last month as part of a package of measures to jump-start a sluggish euro zone economy, where inflation is running far below the central bank’s target. The German economy is nonetheless still outperforming other countries in the bloc. Weidmann added that if the Bundesbank were autonomous, Germany would benefit from a tighter rather than a looser monetary policy and warned about the risks of leaving policy loose for too long.

At the monthly news conference, Draghi said risks to the euro zone economic recovery remained primarily negative and left the door open to a possible asset-buying program by the ECB, which Weidmann has cautioned against in all but exceptional circumstances. Weidmann put the onus on governments to act, urging them to shape up their economies and consolidate their budgets as the euro zone recovers from the debt crisis that took it to the brink of break-up. The euro was steady at $1.3604, having wobbled on either side of $1.3600 in the past week. European Central Bank President Mario Draghi is scheduled to give an introductory statement at the quarterly hearing before the Committee on Economic and Monetary Affairs of the European Parliament later in the day.

ECB President Draghi speaks today @ 17.00 GMT.

U.S. Dollar Firms In Subdued Trade; Market Awaits Yellen

The dollar edged up slightly against the yen today as investors awaited events this week including Federal Reserve Chair Janet Yellen’s congressional testimony for cues on the outlook for U.S. monetary policy. Investors also awaited a policy review by the Bank of Japan on Tuesday, though the central bank was widely expected to maintain its policy and its broader economic outlook. The BOJ next week may trim its economic growth forecast for the current year, reflecting soft exports and a bigger-than-expected slump in household spending after a sales tax hike in April, though the change would not tip any policy changes to come. The dollar index edged slightly higher to 80.217, nudging away from a two-month low of 79.740 on July 1. Speculators increased their bullish bets on the U.S. dollar in the latest week, with the value of the dollar’s net long position rising to $10.34 billion in the week through July 8. The total value of positions rose from $8.65 billion the previous week when it was the smallest net long on the dollar in five weeks.

Stock Watch: Guardians Could Open Galaxy Of Riches For Disney

When Disney bought Marvel for $4.2 billion in 2009, its stock sank following news of the acquisition. Analysts warned Disney’s superheroes would have to fight extra hard to win box office dollars. However, under the guidance of Marvel Studios’ President Kevin Feige, the team has been taking more risks and a more character-driven approach to storytelling. So far, it’s paying off. At the time, Disney also inked a landmark deal with Netflix to stream four new and original Marvel series on the platform, starting from 2016. So far, this year has been strong for the Disney/Marvel duo with its latest release, Captain America, dominating at the box office on its opening weekend.

That sums up today’s highlights! Remember to stay in touch for all the latest trading updates of the day - find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

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